Minister says Masela block contract extension not yet official
Monday, October 23 2017 - 02:49 AM WIB
Minister of Energy and Mineral Resources Ignasius Jonan said that the plan to extend the current contract of Inpex Corp over the Masela block in Maluku Province is not yet official, Kontan reported on Monday.
Jonan was quoted by the paper as saying that the plan to extend the current Masela block contract, which is set to expire in 2028, by another 27 years was a verbal agreement he made during a meeting last week in Tokyo with Inpex CEO Toshiaki Kitamura.
He, however, quickly acknowledged that the current contract needs to be extended to allow Inpex, operator of the block, and partner Shell to be able to enjoy profit from its planned investment in the development of the Abadi gas field located in the block as construction of the project alone will take about seven years to complete.
He added that the contract extension is expected to be made next year.
Inpex, which holds a 65 percent interest in the block, is currently still at the planning stage of the Abadi gas field development project, which has suffered delays due to previous lengthy debate whether the company should develop a floating LNG production facility as it previously proposed, or an onshore production facility. President Joko Widodo then decided for the company to adopt the onshore production scheme. (*)